iPhone best at retaining resale value and offers lowest total cost of ownership

A study by Priceonomics "indicates that Apple phones are a better value than smartphones on other platforms," adding, "the market has spoken, and Android and Blackberrys do not age well."

The report notes, "If you wanted to figure out the best cell phone, you could look at all the reviews, test out all the phones, talk to all the experts, but still your assessment will be subjective. Or you could let the market tell you which phones are the highest quality by seeing which ones best retain their value over time."

Based on its sales data, which compares "a phone’s current used price to its new price (without a contract) the day it was released," Priceonomics reports that after 18 months, iPhone retains 53 percent of its retail value, compared to 42 percent for Android and 41 percent for BlackBerry.

The firm also states that "the cost of ownership of an iPhone is the lowest of all platforms," noting that an iPhone only costs $13.20 per month if you resell it at the end of 18 months. An Android phone costs 40 percent more.

Phones in general depreciate most rapidly in their first year, after which their value begins to drop more slowly, the firm notes.

However, in some situations the depreciation of a given model is completely different. "You can buy an iPhone 4S today and sell it a few months later on the secondary market for almost what you paid for it," the site points out

"However," it warns, "if you buy the latest big fancy Android phone, a few months later it has lost hundreds of dollars in value."

In charting relative values of iPhone, Android and BlackBerry models over four years, the group notes, "at every stage, the iPhone retains more of its original value than Android and BlackBerry phones. Even four years later, you can sell a first generation iPhone for $110 dollars."

This has always been the case with non-Apple products. Their resell value sucks compared to Apple's products.

I don't sell any of my old Apple products, but it is an added advantage that Apple's products hold their value and command higher prices than the competition.

If somebody goes out and buys an Android phone for example, it's basically obsolete before you get home from the store and regardless of what you paid for it, it's worth less than a pound of dog crap in a relatively short amount of time.

Not exactly the greatest comparison or at all surprising. When there's one phone a year for an entire platform, vs a new top model every 3 months in a very diversified Android world, naturally the older models depreciate faster. Granted, that doesn't change the original premise and dollars are dollars but I'm almost surprised it's only 10% different.

Also phones are not cars. If someone is looking for a holdover phone due to a broken or lost device or an extra device to give their kids, people often opt for something cheap. In this case a higher value works against that market.

Also phones are not cars. If someone is looking for a holdover phone due to a broken or lost device or an extra device to give their kids, people often opt for something cheap. In this case a higher value works against that market.

It sounds like you're suggesting it's harder to sell a more expensive phone... but we're not talking about a set price here. Most of these phones are being sold on e-bay. Any effects from the phenomenon you are describing are reflected in the price the devices are going for. In other words -- there's almost no effect.

I have no worries I will be able to sell my 4S 18 months from now for more than I paid out of pocket.

It sounds like you're suggesting it's harder to sell a more expensive phone... but we're not talking about a set price here. Most of these phones are being sold on e-bay. Any effects from the phenomenon you are describing are reflected in the price the devices are going for. In other words -- there's almost no effect.

I have no worries I will be able to sell my 4S 18 months from now for more than I paid out of pocket.

You shouldn't have any worries of course not. It's not that it's harder, it's just the target is different. The broad scenarios I gave which make up almost a majority of resold phones are people who say I'm not spending more than xx to get something else. 9/10 times that number is much lower than what an iPhone is going for on ebay or craigslist. That's all.

18 months is an odd timeframe to discuss, with 2-year contracts being the norm in the US. 18 months (no penalty) or 12 months (penalty, but hey, new phone!) seem like the most interesting timeframes to single out.

Is this contradictory to the previous story that the iPhone generates the most money for the carriers? Or is it just because the resale value holds, everyone wins?

In the US, at least, because carriers don't alter their plans if you bring your own phone the carriers make more if you bring in 2nd or 3rd generation device. Something that is clearly more likely to happen with the iPhone over other devices. So not contradictory, but supportive articles.

This bot has been removed from circulation due to a malfunctioning morality chip.

Just checked my local Craig's List. The average iPhone 4, about a year old, is going for $300-$400 dollars. Of course, that's just what people are asking, have no idea what they're getting, if anything.

By contrast, though, the average year old Galaxy S is going for $150.

Now admittedly, as someone mentioned, the rate that new Android phones are introduced certainly depresses the used price-- a phone more than a year old is several models back and feels like old tech. It is interesting how Apple has managed to simultaneously drive demand for new models without giving you the feeling that the previous model is deprecated junk. It's a real difference between Android's rapid churn model, where each new model is brought forward with breathless fanfare (and may in fact be the only reliable way to get a shot at the latest version of Android), only to be tossed on the junk heap a few months later, and Apple, who is selling yearly clients to the iOS platform with evolutionary improvements.

They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.

After using your iPhone for 18 months, it still retains 53% versus 42% for Android, and 41% for BlackBerry. Thats $312 of cash value if you resell your old iPhone on eBay or Craigslist.

An iPhone retains 53% of its value with a $312 resale. This means a new iPhone costs $589 (where at?!?!) with a total cost of ownership over 18 months (after resale) of $277.

Quote:

The iPhone hardware only costs you $13.20 per month if you resell it at the end of 18 months. Android phones cost 40% more. Either one seems like a deal compared to a monthly cell phone bill!

$13.20/month is $238. That's $39 less than the figure they quoted above. I could understand $39 more (i.e. if they took into account electricity & resale fees into the total cost of ownership) but $39 less doesn't make any sense at all.

They mention the total cost of ownership for Android was 40% more, or $18.48/month which is $333 over an 18 month period.

From the quote above the Android devices maintain 42% of their value over 18 months, which means their price for a new Android phone is $793, as opposed to $589 for an iPhone.

I'm not saying the iPhone doesn't have a lower total cost of ownership, I really don't know.

However I do think these guys have some pretty messed up numbers, and if they are saying there is a 35% ($204) up-front premium for an Android device over an iPhone then no wonder they came to the conclusion the iPhone has the lowest total cost of ownership!!!

I first bought the iPhone in 2007 at the first price drop. I sold that one for 300.00, bought a 3GS. Sold that one for nearly 400. Bought the iPhone 4. Sold that one for 350, bought the iPhone 4S 32gb. When the next generation comes out I'll sell the 4S. I HAVE HARDLY SPENT any money on iPhone hardware. The iPhone DOMINATES